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-   -   Pacific Seacraft Bankrupt (http://www.sailnet.com/forums/general-discussion-sailing-related/32871-pacific-seacraft-bankrupt.html)

RickBowman 05-24-2007 12:33 PM

Pacific Seacraft Bankrupt
 
edited out

TSteele65 05-24-2007 01:26 PM

That would explain why the website has been down for months...

cardiacpaul 05-24-2007 01:34 PM

so.... what happens to saga, if anything

Cruisingdad 05-24-2007 04:59 PM

Ouch.

Great boats. Very similair to Valiant. I know they had trouble many years back... not sure about the bankrupt thing though. I think they are like 2 years out now!! Not sure if that is true, just what I heard.

Goes back to that discussion on boats, their costs, and how very expeisive our lifestyle is. Hope they can stick around.

- CD

Jeff_H 05-24-2007 05:39 PM

What's amazing to me is that this is a company with a solid reputation, a cult following, low tooling costs since they have been producing the same designs since the bronze age, years long waiting lists, and they still are going belly up. It would seem to me that if any small builder should have been making moneym they should and so if they can't make it, I would think it next to imposible for any small US builder to make it.

Jeff

snider 05-24-2007 05:52 PM

I agree Jeff
 
Yeah you would think if any builder would make it they would. There boats definetly are not what most builders are building, therefore they should have a market. On the other hand, how many people can afford a brand new PSC and to go cruising for a few years. I have always loved there boats and plan on buying a well used 34 soon. Would be nice to have an active manufacturer.

Cruisingdad 05-24-2007 06:25 PM

What happened is that the sailing community finally started listening to ole CD and realized a Catalina is the boat to buy!!!

Ahh, the glory. I am a truly wonderful person. I think I will change my name to GD: GhandiDad. (smile)

- CD

niko 05-24-2007 07:39 PM

Historically, how many boatyards have survived Chapter 11?
What are the odds here?

I mean, one can restructure and screw one's creditors in the process, but unless the fundamentals change, one will simply start digging a fresh hole..

N --

Wendy 05-24-2007 08:18 PM

I bought a new to me Pacific Seacraft a week ago, so I am pretty bummed about this. Hopefully the company will emerge from Chapter 11 stronger with an improved business model. Regardless, I know I have one of the finest boats built and I don't regret having chosen a PSC. These boats aren't for everyone- they were never intended to be. For those with the courage and desire to go anywhere anytime, it would be hard to find a better boat to take them there. They are truly handmade American works of art and it would be sad indeed if he company is unable to continue operations. I really want to see one of the Perry 38's they are planning to produce.

This isn't about "should have bought a Catalina". There are people's livelihoods at stake here, there are people with a significant investment of time and money who would hope to have continued factory support, and there are people who have ordered boats in production who's investment and dreams are now just a little bit threatened.

Let's hope this works out for the best.

Wendy

Jeff_H 05-24-2007 09:26 PM

I have been thinking about this since last I wrote. After noodling this around for a while I can see a number of problems that Pacific Seacraft may have faced. At some level Pacific Seacraft is a victim of their own success and business model. Because Pacific Seacraft's model's have stayed in production for a very long time they are in the unenviable position of competing with thier own boats.

Over time Pacific Seacrafts have gotten more expensive, but they haven't improved all that much. They may have improved build quality quite a bit since the late 1980's and early 1990's, but the designs have not improved at all. But in the period since these boats were first penned, our understanding of what makes a comfortable, easily handled seaboats really has changed.

So as I think about it, they start out dealing with a narrow portion of the market that is looking for an out of date offshore cruising design, and then they are stuck trying to sell the newer boats for two or three times what their own older boats are selling for. Even if you consider the perhaps $100K cost that it could take to properly rejuvinate one of the older boat to a condition adequate for prolonged offshore usage, the old boats are still something of a bargain when compared to the newer boats, that is if you assume that there is still a market for these older designs.

And of course I can see how this could lead to a kind of a death spiral where competion with their own bargain priced boats of identical design makes it hard to raise costs commensorate to what these boats cost to produce, and as prices go up production numbers go down and so supplier quantity discounts go down and prices need rise further.

I hate when that happens.
Jeff


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